Market Letters

Laufer Market Advisory 05/27/21: Port of Yantian Closure

Due to the combination of increasing severe congestion and a recent outbreak of coronavirus, Yantian International Container Terminal (YICT) announced that has stopped accepting loaded export containers.

Five cases of COVID-19 asymptomatic carriers were confirmed in Yantian area and now all terminal workers are required to take a Covid-19 test every day. This is affecting the efficiency of terminal operation and further added to the terminal congestion.

“Due to increasingly serious delays in vessel schedules, the container yard is now in high utilisation rate, which seriously affects the efficiency of terminal operations. This also causes traffic congestion around the port area.” [YICT]

Restrictions on terminal receipt of loaded export containers began May 25 at 2200 hrs. local time and currently reported to remain in effect through 23:59 hrs., May 30th.  Beginning May 31st at 00:00 and lasting through June 6th, the terminal will resume accepting loaded export containers but only within 3 days of vessel ETA (typically, this is 7 days prior to vessel ETA).

This closure will only cause the Yantian congestion issue to further deteriorate. Some carriers have already announced that they will skip Yantian port, creating further delays and continuing congestion at Yantian for the coming weeks. It is expected that this will also add increasing upward pressure on rates as well as potential additional costs due to delays and rerouting.

Just one carrier example of the impact that this has had - COSCO has skipped Yantian call for the following vessels:

Thank you for your continued support during these challenging times. Should you have any questions or concerns regarding this advisory, please contact your local Laufer sales or operations representative.